That scenario sound plausible unless you believe that the bullion banks are acting for the US Treasury in supressing the gold price.

My guess is thay make it look like GS etc are getting a slap on the wrists but the manipulation goes in some other form. Volker said the mistake they made in the 1970s was not to control the gold price. Looks like they have decided not to repeat that "mistake" this time round.

I still think they're attempting a steady depreciation of the dollar, and all fiat money, against gold, i.e. a controlled ascent of the gold price in dollars. It will go for another decade but eventually we get to the right price to back the money and just maybe we go back on a gold standard and end this paper money charade.

In the meantime we have double digit price inflation for a decade and the policians attempt to renege/water down the un-funded liabilities. I kind of hope it works as would be preferable to a hyperinflationary depression... Either way, we're in the right asset class.